If you are a business then chances are you have a lot of interaction with third parties, whether it be clients, employees or suppliers. Have you ever thought about how your business would react if it was found legally responsible for causing injury to these parties or damaging their property. This is where public liability insurance comes in. Public liability insurance can help safeguard your business against the financial implications of being found negligent against third parties. Essentially, it protects your business from the legal and court costs that result from someone’s injury or damaged property.
What does it cover?
Public Liability insurance covers you against the result of being found negligent. Negligence is not providing adequate care to avoid a third party from foreseeable harm.
Public Liability Insurance policies generally covers:
- Any legal costs
- Any loss or damage of goods
- First aid and medical costs during the incident
- Any damaged caused by your businesses products
- Protection for those not named in the policy
It is important to note that many Public Liability Insurance policies do not cover an employer’s responsibility to an injured worker, and that your business will need to find separate worker’s compensation insurance
Why you need Public Liability Insurance?
Even if you think you have hypothesised any potential harm to third parties, you must understand that accidents happen. This is important because there are many instances where a party can claim negligence. It can include anything from providing advice that leads to an unfavourable outcome, to emotional distress, to economic loss. With this in mind you can not feasibly predict that something will occur, nor can you predict if the third party will take legal action. Claims of public liability are also very costly, irrespective of business activity or size. An acknowledgement of the proverb ‘better safe than sorry’ is important when dealing with the issue of public liability within your business.
How to find the best public liability insurance?
Public Liability Insurance is optional. So it’s important that your business takes action and finds the best insurance policy for you. The level of cover best suited to your business depends on the sector, and how much you interact with third parties. So you should discuss your needs with your insurance or financial provider. It is important to note that public liability insurance often comes standard with business insurance packages.
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